1. Interest User Guide
  2. Processing Interest
  3. Applying Floating Interest Rate
  4. Maintaining Alternate Risk Free Rates

1.2.3 Maintaining Alternate Risk Free Rates

Oracle Banking Corporate Lending supports SOFR (Secured Overnight Financing Rate) float rate published by US Federal Reserve Bank’s Alternative Reference Rate Committee on daily basis.

To capture details of RFR Rate Input screen
  1. On the Homepage, type CFDRFRRT and click next arrow.
    The RFR Rate Input screen is displayed.

    Note:

    The fields which are marked in asterisk red are mandatory fields.

    Figure 1-3 RFR Rate Input


    Description of Figure 1-3 follows
    Description of "Figure 1-3 RFR Rate Input "

  2. The RFR input are defined through this screen. You can enter below details in this screen. For information on fields, refer to the field description table.

    Table 1-3 RFR Rate Input Details

    Field Description
    Rate Code Specify the rate code to identify the Risk Free Rates (RFR). For example, SOFR
    Rate Description The Rate Description appears based on the rate code
    Type You can select type as Rate for Daily and Average Rates or select Index value for Compound Index rates.
    Currency Details

    Specify the currency for this rate code.

    You can select appropriate currency code from the option list for the rate code that maintained in the system.
    Rate Received Date The date on which SOFR is received.
    Effective Date Each rate that you define for a rate code and currency combination should have an effective date associated with it. This is the date on which the rate comes into effect. Once a rate comes into effect, it is applicable till a rate with another effective date is given for the same rate code and currency combination.

    Note:

    The rates are applied to a contract depending on whether it has been defined with Auto Rate Code Usage or Periodic Rate Code Usage. You can specify this in the Interest Class Maintenance sub-screen of the Loans and Commitment Product Definition screen.
    Rate Applicable Days The number of days the defined rate is applicable.
    Percentile Rate Details Display the monthly/quarterly/ yearly/average rate details received from SOFR.
    Volume (in Billions) The number of transactions considered to arrive at the Risk Free Rate, as published by the agency.
    Rate Captured Date and Time Display the date and time when the rate was uploaded or captured into the OBCL rate maintenance system.

Parent topic: Applying Floating Interest Rate